Reclaiming Interest on Unfair Charges

esmerellda

You do still appear to be confusing the two different interests.

Interest 1 - the interest the bank have charged YOU on the charges (so if the charges were part of your overdraft and they charged you interest on those charges, you claim that back)

Interest 2 - Contractual Interest - this is what Sempra is all about. And basically it is you charging the bank the same rate of interest they charged you. So if they charged you 15% on your unauthorised overdraft, you'd claim an additional 15% PA on each charge. You then compound it daily or monthly depending on what basis the bank calculated their interest.


Contractual Interest is proven in Credit Card cases. Not though in Bank cases. yet. It a difficult argument and not one i would recommend at all unless you understand the issues completely.

The other interest - 8% PA is what a court would award you on a win - and also what we tend to claim as a 'compensatory' element. This is simple, not compounded interest and what most spreadsheets will work out.

ccmug

Ame

Thanks for the reply.

No longer confused about those two interests but was confused about Contractual versus the 8% but I'll take your advice and avoid it on the bank claims. May I pm you about it when i get onto the credit cards?

Can you confirm that my method for estimating the charged interest is reasonable?

esmerellda

mmmmm I think you are making it too complicated, let the bank do the hard work. The old advanced spreadie on cag used to do it fine for credit cards, I don't know about the new one for banks accounts as I'm barred from their site.

I'd look at what proportion of your OD was charges each month (even if the charges were taken in credit balance) then take same proportion of interest charged.

Regarding the contractual interest on the credit card, I would be happy to go through the basics with you, however there are many people who are much more experienced than I on this, Budgie over on LB for instance obtained judgment against a card provider for compound interest, which is fantastic, although the bank settled before the court were enabled to make a judgment on the precise rate to be applied. - http://www.legalbeagles.info/forums/showpost.php?p=94474&postcount=1 - is the judgment